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New York Regulators Approve Three-Year Con Edison Rate Increases Effective Jan. 1

The plan is smaller than Con Ed’s original request and steers new revenue to reliability work, property taxes, clean-energy investments and added bill transparency.

Overview

  • Approved by a unanimous PSC vote on Jan. 22, the three-year plan is retroactive to Jan. 1, 2026 and covers 3.4 million electric and 1.1 million gas customers in New York City and Westchester.
  • Typical New York City electric bills rise about $4 per month initially, with gas bills increasing roughly $5 to $19 monthly depending on usage, according to the PSC order.
  • The settlement cuts Con Ed’s initial 2026 ask by about 87% and permits an allowed return on equity of roughly 9.4% for system investments.
  • Regulators cite higher property taxes, grid maintenance and resilience needs, and programs for efficiency, heat pumps, IT and gas-leak remediation as key cost drivers.
  • The order adds consumer protections including itemized property-tax lines on bills, expanded language access and targeted outreach to prevent building-wide shutoffs, as advocates warn of affordability strains with about 414,000 customers 60+ days in arrears owing roughly $871 million.